Professional Tips For Buying Property At Auction

If you’re looking at buying at auction, you would be very wise to follow some simple, but very important steps prior to going ahead. We hear from many clients who have settled on a property, gone into an auction, successfully bid for a property and after doing all this, suddenly have the plan change on them when more information about the property comes to light.

Prior To Entering The Auction

  • I would advise you to do a ‘practice run’ by attending an auction in which you are interested in no properties, to get an understanding of behavioural patterns and how auctions are played out.
  • Carefully check each lot and arrange viewings of any you are interested in and sense check the property against the description, inaccuracies could be a bad sign and need looking into.
  • Make sure you make initial financial arrangements to ensure you are able to complete on any properties you plan on bidding for.
  • Ask your solicitor to make initial enquiries into the property to ensure there are no nasty surprises, there may be conditions in the catalogue/online that should be checked into.
  • Ensure you have planned an exactly what you are willing to pay for the property and do not bid above this, no matter what.

Following a successful bid for a property, you will have to pay a non-refundable 10% deposit for the property and usually have 28 days to come up with the other 90%, failure to do this in time can result in loss of deposit.

As master finance brokers we come across a lot of clients that are stressed out and well into their 28 day completion with no route of achieving the finance after a decline, or after being let down elsewhere. When you’re so late in the day, it can push you to take a less than ideal rate due to the time constraints. By following these steps, and discussing yours or your client’s needs well in advance, you can take a lot of the strain out of the process. Feel free to contact ABC Finance today if you have any questions or call us directly on 0800 088 6008, and we’ll be happy to help.

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2017-05-12T13:49:11+00:00 Tags: |